Required: (a) Calculate the variable manufacturing overhead and fixed manufacturing overhead flexible budget variances for June 2019 at Parker Corporation, in as much detail as possible. Indicate whether the variances are favourable or unfavourable. (b) Provide the journal entry (or entries) that close the variances calculated in (a) above to cost of coods sold (COGSI Narration is pot required
Required: (a) Calculate the variable manufacturing overhead and fixed manufacturing overhead flexible budget variances for June 2019 at Parker Corporation, in as much detail as possible. Indicate whether the variances are favourable or unfavourable. (b) Provide the journal entry (or entries) that close the variances calculated in (a) above to cost of coods sold (COGSI Narration is pot required
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Parker Corporation is a manufacturer of generic laptops. Fixed and variable
manufacturing overheads are allocated to each laptop using budgeted assembly
hours. Budgeted assembly time is 2 hours per laptop. Exhibit 5 shows the budgeted
amounts and actual results related to overhead for June 2019.
Exhibit 5 Manufacturing Overhead at Parker Corporation for June 2019
Actual Results
Static (Master)
Budget
Number of laptops assembled and sold
Hours of assembly time
Variable manufacturing overhead cost per Not disclosed
| assembly hour
Variable manufacturing overhead costs
Fixed manufacturing overhead costs
225
| 360 hours
110
Not disclosed
$32/hour
$11,933
Not disclosed
$12,180
$10,780
Required: (a) Calculate the variable manufacturing overhead and fixed manufacturing overhead
flexible budget variances for June 2019 at Parker Corporation, in as much detail as possible. Indicate
whether the variances are favourable or unfavourable.
(b) Provide the journal entry (or entries) that close the variances calculated in (a) above to cost of
goods sold (COGS). Narration is not required.
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